On New Delhi’s accusations, Trump Caught off Guard as India Exposes US-Russia Trade Amid Tariff Tensions. US President Donald Trump is facing growing backlash after India accused the United States of hypocrisy for threatening tariffs over Russian oil imports while quietly continuing its own trade with Moscow.
In a press briefing that took an unexpected turn, Trump appeared unaware that the US imports uranium, fertilisers, and palladium from Russia—exports India cited in its sharp rebuttal of Trump’s accusations.
With Trump’s 25% tariff on Indian goods already in motion and further increases hinted at, New Delhi’s counteroffensive is gaining traction both domestically and internationally.
Indian officials called the US stance “unjustified and unreasonable,” as global observers question the double standards in America’s foreign trade policies.
Trump Caught off Guard as India Exposes US-Russia Trade Amid Tariff Tensions
India Highlights US Imports from Russia: Uranium, Palladium, Fertilisers
India’s Ministry of External Affairs (MEA) fired back strongly at Washington’s criticism this week, stating that the US continues to import uranium hexafluoride for its nuclear industry, palladium for electric vehicles, and fertilisers and chemicals from Russia, even while criticizing New Delhi for its energy dealings with Moscow.
“Where the US is concerned, it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilisers as well as chemicals,” said MEA spokesperson Randhir Jaiswal.
The statement came in response to Trump’s threat of significantly raising tariffs on Indian exports, citing India’s import of discounted Russian oil as a means of “fueling the war machine.”
Trump’s Surprised Reaction: “I Don’t Know Anything About It”
During a press conference originally intended to highlight the 2028 Los Angeles Olympics, Trump was asked about India’s claim regarding the US’s ongoing trade with Russia. His reply raised eyebrows:
“I don’t know anything about it. I have to check it out,” he said.
The comment has since intensified criticism from both US and international observers, suggesting a lack of coordination or understanding within the administration regarding its own import data amid escalating geopolitical rhetoric.
India Defends Russian Oil Trade as Economic Necessity
India maintained a firm stance, stating its Russian oil imports are based on market conditions and economic imperatives, especially during a time of global energy volatility.
“The sourcing of our energy needs is guided by what is available in the markets and by prevailing global circumstances,” Jaiswal clarified.
According to Reuters, India bought over $50.2 billion worth of Russian oil in FY 2024–25, leveraging discounts created after the West imposed sanctions on Moscow following its 2022 invasion of Ukraine.
India added that its energy decisions are made independently and that criticism from the West is rooted more in geopolitical pressure than global fairness.
Trump Warns of More Tariffs on India Over Russian Oil
In an interview with CNBC, Trump doubled down on his criticism of India, threatening to hike the current 25% tariff on Indian goods:
“India has not been a good trading partner… I think I’m going to raise that very substantially over the next 24 hours, because they’re buying Russian oil. They’re fueling the war machine,” he said.
Trump also suggested that countries importing Russian energy, like China, could face similar actions, though no specific tariffs were announced.
“I never said a percentage, but we’ll be doing quite a bit of that,” he added.
Russia Defends India’s Right to Trade Freely
Reacting to Trump’s remarks, Kremlin Spokesman Dmitry Peskov stated that every sovereign country has the right to select its trade partners freely:
“We believe that sovereign countries must have and do have the right to choose their trade partners… and determine those modes of trade and economic cooperation that suit their national interests,” Peskov said.
Meanwhile, Russian Foreign Ministry spokesperson Maria Zakharova accused the US of pursuing a neocolonial policy to maintain global dominance.
“Washington cannot come to terms with the loss of hegemony… and continues to pursue a neocolonial policy in an attempt to maintain its position,” she stated.
Nikki Haley Sides With India, Slams China Exception
Former UN Ambassador and GOP leader Nikki Haley also weighed in, supporting India and criticizing Trump’s inconsistent stance.
She posted on X (formerly Twitter):
“India should not be buying oil from Russia. But China, an adversary and the number one buyer of Russian and Iranian oil, got a 90-day tariff pause. Don’t give China a pass and burn a relationship with a strong ally like India.”
Her remarks underscore the rising divide within the Republican Party on how to manage global alliances, especially in the Indo-Pacific region where India plays a vital counterbalance to China.
India Accuses West of Hypocrisy in Russia Policy
In its scathing statement, India’s MEA not only pointed at the US’s Russian imports, but also exposed Europe’s ongoing trade with Russia, noting that it includes fertilisers, iron, steel, machinery, and transport equipment.
“Unlike our case, such trade is not even a vital national compulsion,” India stated, emphasizing that developed nations continue their business with Moscow while urging developing economies like India to refrain.
India made it clear that it would not bow to political pressure and would continue to act in the best interest of its economic and strategic priorities.
Trump’s Special Envoy Set for Moscow Talks
Amid all the tariff threats, Trump revealed that US Special Envoy Steve Witkoff is scheduled to meet with Russian leaders in Moscow.
The meeting aims to pursue a diplomatic breakthrough to end the war in Ukraine.
“This is the one I’m trying to stop. And one I’m working hardest on,” Trump said about the Russia-Ukraine conflict.
He hinted that any decision regarding tariffs on Russia or its trade partners will be determined following these negotiations.
Indian Oil & Gas Stocks Plummet Amid Tariff Uncertainty
As expected, Trump’s remarks sent tremors through India’s stock markets, particularly the oil and gas sector, which is heavily reliant on discounted Russian crude.
Major companies saw significant losses on Tuesday:
- HPCL: ↓ 3.47%
- BPCL: ↓ 2.53%
- IOC: ↓ 2.13%
- Oil India: ↓ 2.05%
- Mahanagar Gas: ↓ 2.71%
- Reliance Industries: ↓ 1.18%
The Nifty Oil & Gas Index also declined 1.3%, indicating investor anxiety about a possible policy shift in Indian imports and refining margins.
Analysts Warn of Financial Risk if Russian Imports Halted
Analysts from JM Financial sounded alarm bells, noting that Russian crude comprises 30–40% of India’s imports, often acquired at a $3–4 per barrel discount.
If imports are halted:
- Gross Refining Margins (GRMs) could drop by $1–1.5 per barrel
- FY26 EBITDA may drop 8–10% for Oil Marketing Companies (OMCs)
- MRPL and CPCL could see a 20–25% decline in profits
- Reliance Industries earnings may fall by 2%
They also warned that the breakeven marketing margin for Indian oil firms is ₹3.5 per litre, achievable only if Brent crude remains around $75 per barrel. Any sustained rise above this could cut consolidated EBITDA by 7–10%.
Investment Outlook: Who to Buy, Who to Avoid
Despite the turbulence, JM Financial offered a set of stock recommendations:
- SELL: HPCL and IOC
- HOLD: BPCL (due to overvaluation and capex risk)
- BUY: ONGC and Oil India
Both ONGC and Oil India are expected to benefit from:
- Continued high crude prices
- 15–25% production growth
- Expansion of Numaligarh Refinery from 3 MTPA to 9 MTPA by December 2025
Conclusion: India Holds the Line Amid Rising US Pressure
As the geopolitical chessboard shifts, India has drawn a red line in response to US pressure prioritizing its national interest over Western demands. By highlighting US-Russia trade contradictions, India has turned the diplomatic tables on Trump, exposing what it calls the West’s selective outrage.
With Indian oil companies under stress, global energy markets uncertain, and intra-GOP criticism mounting, Trump may soon need to recalibrate his tariff diplomacy especially if India’s stance continues to find resonance on the world stage.
For now, India is standing firm. The coming days, shaped by Moscow negotiations and potential tariff announcements, will determine whether the trade war with India escalates or cools under the weight of economic and political reality.
Also Read: Can the EU and NATO Impose Tariffs on India and China as Trump Demands to Pressure Russia?
Also Read: US Penalised India, But Data Shows It Traded More With Russia Than Ukraine
